Analysis by an industry leader has examined how the type of borrower affects the likelihood of a mortgage default

“If it is decided that rates are to be reduced there will be potential opportunities for clients to refinance and take advantage of a lower rate on their loans. Mortgage brokers may contact particular clients in these circumstances or the clients may contact their broker for a loan evaluation.”

Should the cash rate be lowered further, Fisher says he thinks some lenders will be prepared to follow suit.

“If there is a cash rate cut, some lenders will take the opportunity to pass on a full reduction in their rate to attract new customers but, as is often the case, the banks have a very structured approach to setting their rate and the cash rate is just one aspect in their equation.”